Since the annual meetings of the IMF in September 2005, its Managing Director, Rodrigo de Rato, has been publicizing a medium-term strategy for the institution based on the organizing principle of globalization. Mr de Rato presents the challenges facing the Fund as global economic imbalances, capital account crises and the problems of low-income countries. But do his envisaged reforms meet these challenges, and are there other issues that need to be addressed? This paper provides a critical evaluation of the main elements of the Fund’s strategy and briefly examines a number of alternative reforms.
Graham Bird is Professor of Economics at the University of Surrey and Director of the Surrey Centre for International Economic Studies. He is Visiting Professor at The Fletcher School, Tufts University, and at Claremont McKenna College in the US, and has been a Visiting Scholar in the IMF’s Research Department. He has been an adviser to the Independent Evaluation Office of the IMF and to the World Bank, UNDP, UNICEF and the Commonwealth Secretariat. He is the author, co-author or editor of more than twenty books and monographs and has written about 150 papers in academic journals. His most recent book International Finance and the Developing Economies was published by Palgrave in 2004. He is currently directing a research project sponsored by the British Academy which is examining IMF Programmes: Their Determinants and Effects on Other Financial Flows.